Fannie Mae-No Politics (FNMA)

[kthomp19]

What would be interesting to know is if the termination of conservatorship would result in a significant reduction of FHFA's workforce.

Now that is quite possible. FHFA has an entire division devoted to the conservatorships, and FHFA's duties as a whole would be reduced if it was only regulator instead of both regulator and conservator.

If so, my argument that there would be little incentive to end conservatorship would still be justified within limits.

Yes, that is a logical argument.

Now that the President has at-will removal power over the FHFA Director, though, the President can overrule the Director with regards to continued conservatorship. Also, Treasury holds both explicit (in the contract) and effective (via control of the senior prefs that prevent a capital raise) control over FnF being released.